uploads/2017/04/NEE-iv-1.jpg

Analyzing NextEra Energy’s Implied Volatility

By

Updated

NextEra Energy’s implied volatility

On April 21, 2017, NextEra Energy’s (NEE) implied volatility was 13.3%—marginally below its 15-day average of 15%. As the following graph shows, a fall in NextEra Energy’s implied volatility has generally been associated with gains in its stock price. A rise in its implied volatility has generally been associated with stock price declines.

NEE iv

In comparison, the Utilities Select Sector SPDR (XLU) had an implied volatility of 13% on April 21, 2017. Southern Company’s (SO) implied volatility was near 13.4% that day as well. Southern Company is NextEra Energy’s peer.

In the next part of this series, we’ll look at NextEra Energy’s price targets and compare them with its peers.

Article continues below advertisement
Advertisement

More From Market Realist